TMI Blog2022 (11) TMI 260X X X X Extracts X X X X X X X X Extracts X X X X ..... registered tax payer to claim input tax credit on input services and corresponding expenses like Rent, Advertisement expenses, commission, Professional expenses, other like expenses and capital Goods while being under Margin Scheme (Rule 32(5) of CGST Rules) - the Applicant can claim input tax credit on the expenses in respect of input services and capital goods subjected to section 16 to 21 and rules 36-45 of CGST Act and Rules 2017. - KAR ADRG 40/2022 - - - Dated:- 27-10-2022 - DR. M.P.RAVI PRASAD AND SRI. KIRAN REDDY, MEMBER Represented by : Shri Muniraju P.R., Chartered Accountant ORDER UNDER SECTION 98(4) OF THE CGST ACT, 2017 AND UNDER SECTION 98(4) OF THE KGST ACT, 2017 M/s. Attica Gold Private Limited, No. 11/4, Ground Floor, Queen's Road, Bengalur-560001 (hereinafter referred to as The applicant'), having GSTIN 29AANCA2059B1ZS have filed an application for Advance Ruling under Section 97 of CGST Act, 2017 read with Rule 104 of CGST Rules, 2017 and Section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules, 2017, in FORM GST ARA-01 discharging the fee of Rs 5,000/- each under the CGST Act and the KGST Act. 2. The applicant is a Private Limit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rofessional charges, and other expenses are claimable as per Section 16 of the GST Act where all the conditions are satisfied without which business cannot be run. 6. Applicant's Interpretation of Law: 6.1 The applicant submits that as a registered dealer they satisfy the conditions laid down u/s.16 of the GST Act in order to claim the input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course of furtherance of his business.- Section. 16 reads as under: 16. Eligibility and conditions for taking input tax credit.- (1) Every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner, specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person. (2) Notwithstanding anything contained in this section, no registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services or b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar provisions in the KGST Act. 9. We have considered the submissions made by the applicant in their application for advance ruling. We have also considered the issues involved on which advance ruling is sought by the applicant and relevant facts the submissions made by their learned representative during the time of hearing. 10. The applicant states that they are into sale of second hand goods i.e used gold jewellery which they are buying from individual persons and hence they following Marginal Scheme for discharging the GST liability under Rule 32(5) of the CGST Rules 2017. The Applicant wants to know whether they can claim Input Tax Credit on the expenses like Rent, Advertisement expenses, commission, Professional expenses and other like expenses while being under Marginal Scheme. 11. Now we invite reference of Rule 32(5) of the CGST Rules 2017. The same is reproduced below:- Rule 32. Determination of value in respect of certain supplies.- 1).......... 2).......... 3).......... 4).......... 5) Where a taxable supply is provided by a person dealing in buying and selling of second hand goods i.e., used goods as such or after such minor p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... voice or debit note referred to in clause (a) has been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note in the manner specified under section 37;] (b) he has received the goods or services or both. 2[ Explanation .- For the purposes of this clause, it shall be deemed that the registered person has received the goods or, as the case may be, services- (i) where the goods are delivered by the supplier to a recipient or any other person on the direction of such registered person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to goods or otherwise; (ii) where the services are provided by the supplier to any person on the direction of and on account of such registered person;] 3[(ba) the details of input tax credit in respect of the said supply communicated to such registered person under section 38 has not been restricted;] (c) subject to the provisions of section 41, the tax charged in respect of such supply has been actually paid to the Government, either in cash or through util ..... X X X X Extracts X X X X X X X X Extracts X X X X
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